WOW!!!!! Now what does Kinross do? : ) Opawica enters option deal to acquire Bazooka West
2016-08-02 11:22 ET - News Release
Mr. Fred Kiernicki reports
OPAWICA EXPLORATIONS INC. EXPANDS LAND HOLDINGS AT BAZOOKA PROPERTY, ADJACENT TO YORBEAU RESOURCES INC. - KINROSS GOLD CORP. LOI OPTION, NEAR ROUYN-NORANDA, QUEBEC
Opawica Explorations Inc. has entered into an option agreement with Globex Mining Enterprises Inc. to earn a 100-per-cent interest in 24 mineral claims located in Beauchastel township, Quebec, collectively known as the Bazooka West property. The initial consideration payable to Globex is $30,000 and the issuance of 500,000 common shares of the company upon TSX Venture Exchange acceptance of the transaction, and an additional $30,000 and 500,000 common shares of the company by Jan. 31, 2017, or upon the issuance of a permit to drill, whichever occurs first. In addition, Globex shall retain a 3-per-cent gross metal royalty upon all mineral production from the property, of which 1 per cent may be purchased for $1-million within the first five years of the option. The transaction is subject to regulatory acceptance.
The acquisition extends Opawica's strike length to the west adjacent to the company's 100-per-cent-owned Bazooka property for a total of approximately seven kilometres on the prolific Cadillac Larder Lake Break (CLLB). The company's BP property is contiguous to the western boundary of Yorbeau Resources Inc.'s Rouyn property situated nine kilometres southwest of Rouyn Noranda, Que. The gold mineralization on the company's BP property, where past drilling has intersected world-class gold intercepts, appears to be the extension of the mineralized zones and gold resources known to exist on the western end on the Yorbeau Rouyn property.
The company is now preparing a prospective drill program that is designed to test the fold nose feature, or cross fault, of the CLLB situated on the eastern portion of the company's BP property. Some of the drilling is planned to be conducted perpendicular to the apparent north-south orientation of much of the quartz veining within this part of the CLLB that strikes east-west through the entire approximate seven-kilometre width of Opawica's BWP and BP property holdings. The initial phase I program will be announced at a later date following the securement of a drill permit.
Significant gold mineralization has been established on the Bazooka property from near surface to an approximately 250-metre vertical depth from past drilling by previous owners such as Siscoe's (1944) interval of 5.79 metres of 77.18 grams per tonne gold (true width unknown), with more recent drill intercepts ranging from narrow and intermittent anomalous gold values up to Soque's (1981) interval of 7.5 metres of 25.77 grams per tonne Au, Lake Shore Gold Corp.'s (2003) intercept of 1.25 metres of 94.11 grams per tonne Au, and RT Minerals Corp.'s values of up to 17 metres of core length at 7.86 grams per tonne Au, including a 7.2-metre interval of 16.77 grams per tonne Au (RT Minerals' June 21, 2011, press release). These recent intervals are estimated at approximately 85 per cent to 93 per cent true widths. This gold mineralization is known to exist within 50 metres on strike to the gold mineralization on the Yorbeau property and for a current strike length on Opawica's BP property for approximately one kilometre. The remaining six kilometres of the total CLLB on Opawica's BWP and BP properties have had little to no drilling completed. Opawica's BP property hosts gold mineralization from past drilling which is approximately 500 metres west of the Yorbeau shaft and 250 metres west of the Yorbeau ramp. In addition, gold mineralization is immediately adjacent to an existing capped and accessible shaft on Opawica's Bazooka property. The Opawica and Yorbeau properties have a common north-south boundary extending for about two kilometres.
The company also announces that it has initiated the preparation of a ground reconnaissance program on its 100-per-cent-owned McWatters property. The McWatters property is a 404-hectare property that is contiguous to the eastern boundary of the above-noted Yorbeau property. As part of this work, the company will locate the drill collar of a historic drill hole that reportedly returned a near-surface intercept of seven grams per tonne Au over an interval of 3.7 metres (Lake Shore Gold, 2003 -- sludge sample imperial to metric drilled 1979 -- MNR Quebec government files) and review trenches in the vicinity where grab samples returned up to 1.6 grams per tonne Au (RT Minerals, 2011). The purpose of this work is to outline a drill program in this area.
On June 22, 2016, Yorbeau announced that it had signed a non-binding letter of intent with Kinross Gold Corp., whereby Kinross has the option to acquire a 100-per-cent interest in Yorbeau's Rouyn property in Quebec, Canada, for consideration that includes exploration expenditures of $12-million, cash payments of $25-million (U.S.), plus 2 per cent of the prevailing gold price multiplied by the number of ounces of gold in measured, indicated and inferred resources identified in a resource estimate to be completed, as well as an equity participation in Yorbeau upon signing a definitive option agreement (see Yorbeau press release dated June 22, 2016).
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Yvan Bussieres, PEng, is the independent qualified person who has prepared or supervised the preparation of the information that forms the basis for the scientific and technical disclosure in this news release.
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